Radian Reports Record 2004 Net Income of $519 Million; Fourth
Quarter 2004 Net Income Registers Record $156 Million PHILADELPHIA,
Jan. 19 /PRNewswire-FirstCall/ -- Radian Group Inc. (NYSE:RDN)
today reported its results for the quarter ended December 31, 2004.
The key financial highlights of the quarter and twelve months ended
December 31, 2004 are shown in the following tables: Key Financial
Highlights (dollars in millions, except per share data) Fourth
Quarter: Quarter Ended Quarter Ended Percent December 31, December
31, Change 2004 2003 Net income $156.0 $55.5 181% Diluted net
income per share* $1.62 $0.57 184% Net premiums written $287.3
$298.7 (4%) Net premiums earned $262.8 $266.0 (1%) Revenues**
$379.1 $346.5 9% Book value per share (as of 12/31) $39.98 $34.31
17% Equity in net income of affiliates $50.0 $35.4 41% Twelve
Months: Twelve Twelve Months Ended Months Ended Percent December
31, December 31, Change 2004 2003 Net income $518.7 $385.9 34%
Diluted net income per share* $5.33 $3.95 35% Net premiums written
$1,082.5 $1,110.5 (3%) Net premiums written*** $1,178.9 $1,110.5 6%
Net premiums earned $1,029.5 $1,008.2 2% Net premiums earned***
$1,054.4 $1,008.2 5% Revenues** $1,364.1 $1,279.2 7% Equity in net
income of affiliates $180.6 $105.5 71% * In conformity with the
current period presentation and as required by newly issued
accounting rules, the prior period presentation has been adjusted
to reflect the inclusion of 3.8 million shares underlying
contingently convertible debt. The impact of including these shares
in the calculation was a reduction of $0.06 for the quarter ended
December 31, 2004, $0.01 for the quarter ended December 31, 2003,
$0.18 for the twelve months ended December 31, 2004 and $0.13 for
the twelve months ended December 31, 2003. ** In conformity with
the current period presentation, prior period revenues have been
adjusted to include gain/loss on sales of investments and change in
fair value of derivative instruments and to exclude equity in net
income of affiliates. The adjusted presentation appears in the
financial information that accompanies this release. Certain other
prior-period amounts included in the accompanying financial
information also have been reclassified to conform to the current
period presentation. *** These amounts exclude the impact of one of
the primary insurer's recapture of business from Radian's financial
guaranty reinsurance business, which is described in Radian's
Current Report on Form 8-K, filed with the Securities and Exchange
Commission on February 11, 2004. A reconciliation and additional
information about the impact of this recapture can be found in
Schedules 1 and 2 to this release. "Our 2004 quarterly and full
year results reflect continued growth in earnings and book value,"
said Radian's Chairman and CEO, Frank P. Filipps. "In a challenging
business environment, we achieved record net income of $156 million
in the fourth quarter and $519 million for the year, while book
value increased 17%." Radian will hold a conference call on
Thursday, January 20, 2005, at 9:00 a.m. Eastern time to discuss
the company's 2004 results. This call will be broadcast live over
the Internet at
http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives
or at http://www.radian.biz/, under "News." A replay of the webcast
will be available at this site approximately two hours after the
live broadcast ends for a period of one year. Statistical and
financial information which is expected to be referred to during
the conference call will be available on Radian's website under
"Investor Information - Webcasts, Presentations and Transcripts" or
by clicking on
http://www.ir.radian.biz/phoenix.zhtml?c=112301&p=irol-audioarchives.
Radian Group Inc. is a leading credit enhancement provider to the
global financial and capital markets, headquartered in
Philadelphia. Radian's subsidiaries provide products and services
through three business lines: financial guaranty, mortgage
insurance and other financial services. Additional information may
be found at http://www.radian.biz/. Financial Results and
Supplemental Information Contents Exhibit A: Condensed Consolidated
Statements of Income Exhibit B: Condensed Consolidated Balance
Sheets Exhibit C: Segment Information Quarter Ended December 31,
2004 Exhibit D: Segment Information Quarter Ended December 31, 2003
Exhibit E: Segment Information Year Ended December 31, 2004 Exhibit
F: Segment Information Year Ended December 31, 2003 Exhibit G:
Financial Guaranty Insurance Supplemental Information - Quarter and
Year Ended and as of December 31, 2004 Exhibit H: Financial
Guaranty Insurance Supplemental Information - Quarter and Year
Ended and as of December 31, 2004 Exhibit I: Mortgage Insurance
Supplemental Information: New Insurance Written, Risk Written and
Captives Exhibit J: Mortgage Insurance Supplemental Information:
Insurance in Force and Risk in Force Exhibit K: Mortgage Insurance
Supplemental Information: Risk in Force by LTV and Policy Year
Exhibit L: Mortgage Insurance Supplemental Information: Claims and
Defaults Exhibit M: Mortgage Insurance Supplemental Information:
ALT A Exhibit N: Financial Services Supplemental Information
Exhibit O: Supplemental Schedule 1: Reinsurance Clawback Impact on
Radian Group Exhibit P: Supplemental Schedule 2: Reinsurance
Clawback Impact on Financial Guaranty Radian Group Inc. and
Subsidiaries Condensed Consolidated Statements of Income Exhibit A
Quarter Ended Year Ended December 31 December 31 2004 2003 2004
2003 (In thousands, except per share amounts) Revenues: Net
premiums written $287,260 $298,704 $1,082,487 $1,110,477 Net
premiums earned $262,767 $265,999 $1,029,484 $1,008,183 Net
investment income 52,679 46,122 204,349 186,163 Gain on sales of
investments 9,843 8,760 50,799 17,387 Change in fair value of
derivative instruments 44,559 10,794 47,135 4,139 Other income
9,290 14,873 32,286 63,322 Total revenues 379,138 346,548 1,364,053
1,279,194 Expenses: Provision for losses 111,382 211,994 456,834
476,054 Policy acquisition costs 32,272 32,346 121,830 128,518
Other operating expenses 52,445 58,648 205,687 211,077 Interest
expense 8,646 9,654 34,660 37,542 Total expenses 204,745 312,642
819,011 853,191 Equity in net income of affiliates 49,970 35,442
180,550 105,476 Pretax income 224,363 69,348 725,592 531,479
Provision for income taxes 68,394 13,871 206,939 145,578 Net income
$155,969 $55,477 $518,653 $385,901 Diluted net income per share (1)
$1.62 $0.57 $5.33 $3.95 (1) Net income per share reconciliation Net
income $155,969 $55,477 $518,653 $385,901 Interest expense on
convertible senior debentures (net of tax) 804 804 3,218 3,218 Net
income available to common stockholders $156,773 $56,281 $521,871
$389,119 Weighted average shares outstanding (in thousands) (2)
96,832 98,838 97,908 98,453 (2) The prior period presentation has
been adjusted to reflect the inclusion of 3.8 million shares
underlying contingently convertible debt as required by newly
issued accounting rules. The impact on diluted net income per share
of including these shares in the calculation was a reduction of
$0.06 per share and $0.01 per share for the quarters ended December
31, 2004 and 2003, respectively, and $0.18 per share and $0.13 per
share for the twelve months ended December 31, 2004 and 2003,
respectively. Radian Group Inc. and Subsidiaries Condensed
Consolidated Balance Sheets Exhibit B December 31 December 31 (In
thousands except share and per 2004 2003 share amounts) Assets:
Cash and investments $5,500,748 $5,074,531 Investments in
affiliates 393,025 328,478 Deferred policy acquisition costs
211,928 218,779 Prepaid federal income taxes 460,149 358,840 Other
assets 434,970 465,139 Total assets $7,000,820 $6,445,767
Liabilities and stockholders' equity: Unearned premiums $770,208
$718,649 Reserve for losses and loss adjustment expenses 801,012
790,380 Long-term debt 717,640 717,404 Deferred federal income
taxes 848,224 712,354 Other liabilities 174,681 281,136 Total
liabilities 3,311,765 3,219,923 Common stock 96 96 Additional
paid-in capital 1,106,192 1,199,056 Retained earnings 2,397,626
1,886,548 Accumulated other comprehensive income 185,141 140,144
Total stockholders' equity 3,689,055 3,225,844 Total liabilities
and stockholders' equity $7,000,820 $6,445,767 Book value per share
$39.98 $34.31 Radian Group Inc. and Subsidiaries Segment
Information Quarter Ended December 31, 2004 Exhibit C Mortgage
Financial Financial (In thousands) Insurance Services Guaranty
Total Revenues: Net premiums written $214,838 $- $72,422 $287,260
Net premiums earned $202,637 $- $60,130 $262,767 Net investment
income 31,087 16 21,576 52,679 Gain/loss on sales of investments
9,798 (239) 284 9,843 Change in fair value of derivative
instruments 15,761 316 28,482 44,559 Other income 7,646 829 815
9,290 Total revenues 266,929 922 111,287 379,138 Expenses:
Provision for losses 100,774 - 10,608 111,382 Policy acquisition
costs 18,730 - 13,542 32,272 Other operating expenses 35,116 1,730
15,599 52,445 Interest expense 5,032 631 2,983 8,646 Total expenses
159,652 2,361 42,732 204,745 Equity in net income of affiliates -
49,948 22 49,970 Pretax income 107,277 48,509 68,577 224,363
Provision for income taxes 30,730 16,966 20,698 68,394 Net income
$76,547 $31,543 $47,879 $155,969 Assets $4,198,325 $388,975
$2,413,520 $7,000,820 Deferred policy acquisition costs 69,175 -
142,753 211,928 Reserve for losses and loss adjustment expenses
559,632 - 241,380 801,012 Unearned premiums 142,853 - 627,355
770,208 Stockholders' equity 2,065,290 316,378 1,307,387 3,689,055
Radian Group Inc. and Subsidiaries Segment Information Quarter
Ended December 31, 2003 Exhibit D Mortgage Financial Financial (In
thousands) Insurance Services Guaranty Total Revenues: Net premiums
written $191,481 $- $107,223 $298,704 Net premiums earned $202,083
$- $63,916 $265,999 Net investment income 26,482 - 19,640 46,122
Gain/loss on sales of investments 6,752 (618) 2,626 8,760 Change in
fair value of derivative instruments 3,881 55 6,858 10,794 Other
income 6,858 7,386 629 14,873 Total revenues 246,056 6,823 93,669
346,548 Expenses: Provision for losses 96,994 - 115,000 211,994
Policy acquisition costs 16,898 - 15,448 32,346 Other operating
expenses 29,509 18,892 10,247 58,648 Interest expense 5,402 816
3,436 9,654 Total expenses 148,803 19,708 144,131 312,642 Equity in
net income of affiliates - 33,080 2,362 35,442 Pretax income (loss)
97,253 20,195 (48,100) 69,348 Provision (benefit) for income taxes
26,399 8,066 (20,594) 13,871 Net income (loss) $70,854 $12,129
$(27,506) $55,477 Assets $3,849,210 $314,628 $2,281,929 $6,445,767
Deferred policy acquisition costs 79,542 - 139,237 218,779 Reserve
for losses and loss adjustment expenses 513,473 - 276,907 790,380
Unearned premiums 93,415 - 625,234 718,649 Stockholders' equity
1,850,796 260,918 1,114,130 3,225,844 Radian Group Inc. and
Subsidiaries Segment Information Year Ended December 31, 2004
Exhibit E Mortgage Financial Financial (In thousands) Insurance
Services Guaranty Total Revenues: Net premiums written $866,051 $-
$216,436 $1,082,487 Net premiums earned $814,553 $- $214,931
$1,029,484 Net investment income 118,694 98 85,557 204,349 Gain on
sales of investments 44,380 2,424 3,995 50,799 Change in fair value
of derivative instruments 11,940 206 34,989 47,135 Other income
24,247 5,989 2,050 32,286 Total revenues 1,013,814 8,717 341,522
1,364,053 Expenses: Provision for losses 400,936 - 55,898 456,834
Policy acquisition costs 75,487 - 46,343 121,830 Other operating
expenses 141,131 12,229 52,327 205,687 Interest expense 20,138
2,500 12,022 34,660 Total expenses 637,692 14,729 166,590 819,011
Equity in net income of affiliates - 179,128 1,422 180,550 Pretax
income 376,122 173,116 176,354 725,592 Provision for income taxes
104,240 60,577 42,122 206,939 Net income $271,882 $112,539 $134,232
$518,653 Radian Group Inc. and Subsidiaries Segment Information
Year Ended December 31, 2003 Exhibit F Mortgage Financial Financial
(In thousands) Insurance Services Guaranty Total Revenues: Net
premiums written $741,840 $- $368,637 $1,110,477 Net premiums
earned $759,620 $- $248,563 1,008,183 Net investment income 107,690
36 78,437 186,163 Gain/loss on sales of investments 8,123 (2,284)
11,548 17,387 Change in fair value of derivative instruments 3,275
90 774 4,139 Other income 32,003 27,680 3,639 63,322 Total revenues
910,711 25,522 342,961 1,279,194 Expenses: Provision for losses
309,272 - 166,782 476,054 Policy acquisition costs 70,195 - 58,323
128,518 Other operating expenses 125,951 47,058 38,068 211,077
Interest expense 21,467 3,162 12,913 37,542 Total expenses 526,885
50,220 276,086 853,191 Equity in net income of affiliates - 95,507
9,969 105,476 Pretax income 383,826 70,809 76,844 531,479 Provision
for income taxes 104,013 28,313 13,252 145,578 Net income $279,813
$42,496 $63,592 $385,901 Radian Group Inc. Financial Guaranty
Insurance Supplemental Information For the Quarter and Year Ended
and as of December 31, 2004 Exhibit G Quarter Ended Year Ended
(Thousands of dollars, except ratios) December 31 December 31 2004
2003 2004 2003 Net Premiums Written: Public finance direct 16,408
42,060 52,279 85,178 Public finance reinsurance 18,575 14,947
74,777 81,877 Structured direct 17,897 25,608 94,423 88,053
Structured reinsurance 8,299 10,221 32,112 48,702 Trade credit
11,243 14,387 59,262 64,827 72,422 107,223 312,853 368,637 Impact
of recapture (1) - - (96,417) - Net Premiums Written 72,422 107,223
216,436 368,637 Net Premiums Earned: Public finance direct 7,127
5,203 26,643 18,277 Public finance reinsurance 10,841 13,464 41,651
51,118 Structured direct 20,750 18,127 78,292 73,720 Structured
reinsurance 8,053 11,866 33,001 48,497 Trade credit 13,359 15,256
60,236 56,951 60,130 63,916 239,823 248,563 Impact of recapture (1)
- - (24,892) - Net Premiums Earned 60,130 63,916 214,931 248,563
Claims paid: Trade credit 5,607 5,068 24,085 20,663 Financial
guaranty 2,597 2,698 27,237 9,228 Conseco 7,350 - 30,657 - Total
15,554 7,766 81,979 29,891 Impact of recapture (1) - - 11,488 -
Claims paid 15,554 7,766 93,467 29,891 Incurred losses: Trade
credit 5,045 12,133 28,586 35,671 Financial guaranty 5,563 6,867
27,312 20,111 Conseco - 96,000 - 111,000 Total 10,608 115,000
55,898 166,782 Loss ratio - GAAP Basis 17.6% 179.9% 26.0% 67.1%
Expense ratio - GAAP Basis 48.5% 40.2% 45.9% 38.8% 66.1% 220.1%
71.9% 105.9% Refundings included in earned premium 888 1,637 5,055
7,942 (1) Amounts recorded related to the recapture of previously
ceded business by one of the primary insurer customers of the
financial guaranty insurance business in the first quarter of 2004.
Radian Group Inc. Financial Guaranty Insurance Supplemental
Information For the Quarter and Year Ended and as of December 31,
2004 Exhibit H (Thousands of dollars, except ratios) December 31
December 31 2004 2003 Capital and surplus 1,008,423 826,550
Contingency reserve 251,674 321,312 Qualified statutory capital
1,260,097 1,147,862 Unearned premium reserve 730,604 735,156 Loss
and loss expense reserve 132,767 95,130 Total policyholders'
reserves 2,123,468 1,978,148 Present value of installment premiums
252,000 444,368 Reinsurance and soft capital facilities 245,000
275,000 Total claims paying resources 2,620,468 2,697,516 Net debt
service outstanding 101,619,835 117,900,058 Capital leverage ratio
(2) 81 103 Claims paying leverage ratio (3) 39 44 Reserve for
losses and LAE Specific 48,142 86,378 Conseco 80,343 111,000
Non-specific 112,895 79,529 Total 241,380 276,907 (2) Net debt
service outstanding divided by qualified statutory capital (3) Net
debt service outstanding divided by total claims paying resources
Radian Group Inc. Mortgage Insurance Supplemental Information For
the Quarter and Year Ended and as of December 31, 2004 Exhibit I
Quarter Ended December 31 2004 % 2003 % Primary New Insurance
Written (in millions) Flow 7,966 68.1% 11,321 89.2% Structured
3,736 31.9% 1,371 10.8% Total 11,702 100.0% 12,692 100.0% Prime
6,929 59.2% 3,990 31.4% Alt-A 2,654 22.7% 7,491 59.0% A minus and
below 2,119 18.1% 1,211 9.6% Total 11,702 100.0% 12,692 100.0%
Total Primary New Insurance Written by FICO Score (in millions)
=740 2,174 18.6% 3,034 23.9% Total 11,702 100.0% 12,692 100.0%
Percentage of primary new insurance written Monthlies 95% 95%
Refinances 45% 37% 95.01% LTV and above 9% ARMs 51% 31% Primary
risk written (in millions) Flow 1,983 66.3% 2,912 88.1% Structured
1,007 33.7% 394 11.9% Total 2,990 100.0% 3,306 100.0% Pool risk
written (in millions) 65 279 Other risk written (in millions)
Seconds 22 NIMS and other 20 Total other risk written 42 Net
Premiums Written (in thousands) Primary and Pool Insurance 188,257
165,487 Seconds, NIMS and other 26,581 25,994 Net Premiums Written
214,838 191,481 Net Premiums Earned (in thousands) Primary and Pool
Insurance 174,350 171,964 Seconds, NIMS and other 28,287 30,119 Net
Premiums Earned 202,637 202,083 Captives Premiums ceded to captives
($ millions) $22.8 $19.0 % of total premiums 11.6% 10.1% NIW
subject to captives($ millions) $3,991 $4,746 % of primary NIW
34.1% 37.4% IIF subject to captives 33.2% 29.2% RIF subject to
captives 34.9% 31.3% Persistency (twelve months ended December 31)
58.8% 46.7% Year Ended December 31 2004 % 2003 % Primary New
Insurance Written (in millions) Flow 36,358 81.1% 49,488 72.4%
Structured 8,462 18.9% 18,874 27.6% Total 44,820 100.0% 68,362
100.0% Prime 28,391 63.4% 40,940 59.9% Alt-A 10,177 22.7% 20,026
29.3% A minus and below 6,252 13.9% 7,396 10.8% Total 44,820 100.0%
68,362 100.0% Total Primary New Insurance Written by FICO Score (in
millions) =740 9,577 21.4% 17,358 25.4% Total 44,820 100.0% 68,362
100.0% Percentage of primary new insurance written Monthlies 93%
88% Refinances 40% 50% 95.01% LTV and above 11% ARMs 42% 31%
Primary risk written (in millions) Flow 9,179 78.9% 11,965 70.0%
Structured 2,455 21.1% 5,137 30.0% Total 11,634 100.0% 17,102
100.0% Pool risk written (in millions) 441 933 Other risk written
(in millions) Seconds 154 NIMS and other 273 Total other risk
written 427 Net Premiums Written (in thousands) Primary and Pool
Insurance 748,533 651,076 Seconds, NIMS and other 117,518 90,764
Net Premiums Written 866,051 741,840 Net Premiums Earned (in
thousands) Primary and Pool Insurance 685,803 666,514 Seconds, NIMS
and other 128,750 93,106 Net Premiums Earned 814,553 759,620
Captives Premiums ceded to captives ($ millions) $87.3 $73.6 % of
total premiums 11.3% 10.0% NIW subject to captives($ millions)
$17,777 $21,938 % of primary NIW 39.7% 32.1% IIF subject to
captives RIF subject to captives Persistency (twelve months ended
December 31) Radian Group Inc. Mortgage Insurance Supplemental
Information For the Quarter and Year Ended and as of December 31,
2004 Exhibit J December 31 December 31 2004 % 2003 % Primary
insurance in force (in millions) Flow 89,741 77.8% 91,709 76.5%
Structured 25,574 22.2% 28,178 23.5% Total 115,315 100.0% 119,887
100.0% Prime 79,628 69.0% 82,096 68.5% Alt-A 22,092 19.2% 23,710
19.8% A minus and below 13,595 11.8% 14,081 11.7% Total 115,315
100.0% 119,887 100.0% Primary risk in force (in millions) Flow
21,991 81.4% 22,261 82.1% Structured 5,021 18.6% 4,845 17.9% Total
27,012 100.0% 27,106 100.0% Prime 18,422 68.2% 18,449 68.0% Alt-A
5,146 19.1% 5,253 19.4% A minus and below 3,444 12.7% 3,404 12.6%
Total 27,012 100.0% 27,106 100.0% Total Primary Risk in Force by
FICO Score (in millions) =740 5,765 21.3% 5,728 21.1% Total 27,012
100.0% 27,106 100.0% Percentage of primary risk in force Monthlies
92% Refinances 37% 95.01% LTV and above 13% ARMs 31% Radian Group
Inc. Mortgage Insurance Supplemental Information For the Quarter
and Year Ended and as of December 31, 2004 Exhibit K (In millions,
except ratios) December 31 December 31 2004 % 2003 % Total Primary
Risk in Force by LTV 95.01% and above 3,429 12.7% 3,067 11.3%
90.01% to 95.00% 9,822 36.4% 10,184 37.6% 85.01% to 90.00% 10,290
38.1% 10,024 37.0% 85.00% and below 3,471 12.8% 3,831 14.1% Total
27,012 100.0% 27,106 100.0% Total Primary Risk in Force by Policy
Year 2001 and prior 4,202 15.6% 7,837 28.9% 2002 3,410 12.6% 6,198
22.9% 2003 9,046 33.5% 13,071 48.2% 2004 10,354 38.3% - 0.0% Total
27,012 100.0% 27,106 100.0% Pool risk in force 2,384 2,415 GSE Pool
risk in force 1,658 1,393 Other risk in force Seconds 673 725 NIMS
and other 532 328 Total other risk in force 1,205 1,053 Risk to
capital ratio-STAT Basis 10.0:1 11.4:1 Radian Group Inc. Mortgage
Insurance Supplemental Information For the Quarter and Year Ended
and as of December 31, 2004 Exhibit L Quarter Ended Year Ended
December 31 December 31 2004 2003 2004 2003 Direct claims paid (in
thousands) Prime 35,139 31,404 140,822 120,150 Alt-A 21,099 20,432
85,124 56,203 A Minus and below 23,772 21,376 95,438 71,655 Seconds
9,835 5,546 42,969 23,148 Total 89,845 78,758 364,353 271,156
Average claim paid (in thousands) Prime 25.2 24.8 24.1 24.2 Alt-A
37.4 39.7 38.6 40.1 A Minus and below 27.8 27.2 27.1 26.1 Seconds
26.1 24.1 27.0 26.0 Total 28.2 28.2 27.7 27.1 Loss ratio- GAAP
Basis 49.7% 48.0% 49.2% 40.7% Expense ratio-GAAP Basis 26.6% 23.0%
26.6% 25.8% 76.3% 71.0% 75.8% 66.5% December 31 December 31 2004
2003 Default Statistics Primary insurance: Prime Number of insured
loans 610,480 640,778 Number of loans in default 19,434 22,156
Percentage of loans in default 3.18% 3.46% Alt A Number of insured
loans 128,010 138,571 Number of loans in default 8,339 7,343
Percentage of loans in default 6.51% 5.30% A Minus and below Number
of insured loans 104,672 110,054 Number of loans in default 12,678
12,497 Percentage of loans in default 12.11% 11.36% Total Number of
insured loans 843,162 889,403 Number of loans in default 40,451
41,996 Percentage of loans in default 4.80% 4.72% Pool insurance:
Number of insured loans 583,568 599,140 Number of loans in default
6,749 5,738 Percentage of loans in default 1.16% 0.96% Radian Group
Inc. Mortgage Insurance Supplemental Information For the Quarter
and Year Ended and as of December 31, 2004 ALT-A - Exhibit M
Quarter Ended (In millions, except ratios) December 31 2004 % 2003
% Primary New Insurance Written by FICO Score =740 473 17.6% 1,686
22.5% Total Alt A 2,654 100.0% 7,491 100.0% Primary Risk in Force
by FICO Score =740 890 17.3% 870 16.6% Total Alt A 5,146 100.0%
5,253 100.0% Primary Risk in Force by LTV 95.01% and above 370 7.2%
467 8.9% 90.01% to 95.00% 1,816 35.3% 1,823 34.7% 85.01% to 90.00%
2,191 42.6% 2,121 40.4% 85.00% and below 769 14.9% 842 16.0% Total
Alt A 5,146 100.0% 5,253 100.0% Primary Risk in Force by Policy
Year 2001 and prior 372 7.2% 780 14.9% 2002 653 12.7% 1,414 26.9%
2003 1,758 34.2% 3,059 58.2% 2004 2,363 45.9% - - Total Alt A 5,146
100.0% 5,253 100.0% Year Ended (In millions, except ratios)
December 31 2004 % 2003 % Primary New Insurance Written by FICO
Score =740 1,900 18.6% 5,032 25.1% Total Alt A 10,177 100.0% 20,026
100.0% Radian Group Inc. Financial Services Supplemental
Information For the Quarter and Year Ended and as of December 31,
2004 Exhibit N (Thousands of dollars, except Quarter Ended Year
Ended ratios) December 31 December 31 2004 2003 2004 2003
Investment in Affiliates- Selected Information C-BASS Balance,
beginning of period 266,854 211,505 226,710 175,630 Net income for
period 23,219 22,705 95,863 66,080 Dividends received - 7,500
32,500 15,000 Balance, end of period 290,073 226,710 290,073
226,710 Sherman Balance, beginning of period 73,593 54,506 65,979
52,142 Net income for period 26,729 10,375 83,265 29,427 Dividends
received - - 49,800 12,450 Other comprehensive income 1,170 1,098
2,048 (3,140) Balance, end of period 101,492 65,979 101,492 65,979
Portfolio Information: C-BASS Servicing portfolio 33,680,000
20,700,000 Total assets (in thousands) 4,353,652 3,181,468
Servicing income 47,439 34,608 160,397 125,084 Net interest income
40,875 35,907 150,082 126,117 Total revenues 125,058 100,318
479,232 356,828 Sherman Total assets 486,193 505,045 Net revenues
127,654 77,552 480,968 270,775 Supplemental Schedule Schedule 1
Radian Group Inc. and Subsidiaries-Consolidated Exhibit O The
following schedule shows the Consolidated Income Statement as
reported (Column 1) and adjustments (Column 2) to reflect the
income statement impact of the recapture (referred to below as the
clawback) of business previously ceded to the Company by one of the
primary insurer customers of the financial guaranty segment. The
adjusted numbers are shown in Column 3. The impact of the clawback
(Column 2) reflects the clawback of business ceded to the Company
in prior periods. This clawback only affected the first quarter
(and, as a result, the year-to-date periods) of 2004. Accordingly,
management believes that Column 3 provides useful information to
investors by presenting a more meaningful basis of comparison for
the Company's past and future results. As Adjusted Year Ended As
Reported December 31, Year Ended Impact 2004 Year Ended December 31
of Excluding December 31 2004 Clawback Clawback 2003 (Thousands of
dollars, except per share data) Revenues: Net premiums written
$1,082,487 $(96,417) $1,178,904 $1,110,477 Net premiums earned
$1,029,484 $(24,892) $1,054,376 $1,008,183 Net investment income
204,349 - 204,349 186,163 Gain on sales of investments 50,799 -
50,799 17,387 Change in fair value of derivative instruments 47,135
- 47,135 4,139 Other income 32,286 (791) 33,077 63,322 Total
revenues 1,364,053 (25,683) 1,389,736 1,279,194 Expenses: Provision
for losses 456,834 - 456,834 476,054 Policy acquisition costs
121,830 (9,766) 131,596 128,518 Other operating expenses 205,687 -
205,687 211,077 Interest expense 34,660 - 34,660 37,542 Total
expenses 819,011 (9,766) 828,777 853,191 Equity in net income of
affiliates 180,550 - 180,550 105,476 Pretax income 725,592 (15,917)
741,509 531,479 Provision for income taxes 206,939 (5,571) 212,510
145,578 Net income $518,653 $(10,346) $528,999 $385,901 Diluted net
income per share $5.33 $(0.11) $5.44 $3.95 Weighted average shares
outstanding (in thousands) 97,908 97,908 98,453 Supplemental
Schedule Schedule 2 Segment Information-Financial Guaranty Radian
Group Inc. and Subsidiaries Exhibit P The following schedule shows
the Financial Guaranty Segment Income Statement as reported (Column
1) and adjustments (Column 2) to reflect the income statement
impact of the recapture (referred to below as the clawback) of
business previously ceded to the Company by one of the primary
insurer customers of the financial guaranty segment. The adjusted
numbers are shown in Column 3. The impact of the clawback (Column
2) reflects the clawback of business ceded to the Company in prior
periods. This clawback only affected the first quarter (and, as a
result, the year-to-date periods) of 2004. Accordingly, management
believes that Column 3 provides useful information to investors by
presenting a more meaningful basis of comparison for the Company's
past and future results. As Adjusted Year Ended As Reported
December 31, Year Ended Impact 2004 Year Ended December 31 of
Excluding December 31 2004 Clawback Clawback 2003 (Thousands of
dollars) Revenues: Net premiums written $216,436 $(96,417) $312,853
$368,637 Net premiums earned $214,931 $(24,892) $239,823 $248,563
Net investment income 85,557 - 85,557 78,437 Gain on sales of
investments 3,995 - 3,995 11,548 Change in fair value of derivative
instruments 34,989 (791) 35,780 774 Other income 2,050 - 2,050
3,639 Total revenues 341,522 (25,683) 367,205 342,961 Expenses:
Provision for losses 55,898 - 55,898 166,782 Policy acquisition
costs 46,343 (9,766) 56,109 58,323 Other operating expenses 52,327
- 52,327 38,068 Interest expense 12,022 - 12,022 12,913 Total
expenses 166,590 (9,766) 176,356 276,086 Equity in net income of
affiliates 1,422 - 1,422 9,969 Pretax income 176,354 (15,917)
192,271 76,844 Provision for income taxes 42,122 (5,571) 47,693
13,252 Net income $134,232 $(10,346) $144,578 $63,592 Loss
ratio-excluding Clawback 23.3% 67.1% Expense ratio-excluding
Clawback 45.2% 38.8% 68.5% 105.9% All statements in this press
release that address operating performance, events or developments
that we expect or anticipate may occur in the future are
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, Section 21E of the Securities Exchange
Act of 1934 and the U.S. Private Securities Litigation Reform Act
of 1995. These statements are made on the basis of management's
current views and assumptions with respect to future events. The
forward-looking statements are subject to risks and uncertainties
including the following: changes in general financial and political
conditions, such as extended national or regional economic
recessions (or expansions), changes in housing values, changes or
volatility in interest rates, or other political instability;
changes in investor perception of the strength of private mortgage
insurers or financial guaranty providers, and risks faced by the
businesses, municipalities or pools of assets covered by Radian's
insurance; the loss of significant customers with whom Radian has a
concentration of its insurance in force; rising delinquencies in
mortgage loans insured by Radian resulting from increased
consolidation of mortgage lenders and servicers; increased severity
or frequency of losses associated with certain Radian products that
are riskier than traditional mortgage insurance and municipal
guaranty insurance policies; material changes in persistency rates
of Radian's mortgage insurance policies; downgrades of the
insurance financial-strength ratings assigned by the major ratings
agencies to Radian's operating subsidiaries; intense competition
from others and from alternative products to private mortgage
insurance and financial guaranty insurance; changes in the business
practices of Fannie Mae and Freddie Mac; legislative and regulatory
changes affecting demand for private mortgage insurance and
financial guaranty insurance; changes in claims against mortgage
insurance products resulting from the aging of Radian's mortgage
insurance policies; changes in Radian's ability to maintain
sufficient reinsurance capacity in an increasingly concentrated
reinsurance market; vulnerability to the performance of Radian's
strategic investments; and the loss of executive officers or other
key personnel. Investors are also directed to other risks discussed
in documents filed by Radian with the SEC, including the factors
detailed in our annual report on Form 10-K for the year ended
December 31, 2003 in the section immediately preceding Part I of
the report. Radian does not intend to and disclaims any duty or
obligation to update or revise any forward-looking statements made
in this press release to reflect new information, future events or
for any other reason. DATASOURCE: Radian Group Inc. CONTACT: For
investors: Mona Zeehandelaar, +1-215-231-1674, email: ; or For the
media: David Cheung, +1-215-231-1362, email: , both of Radian Group
Web site: http://www.radian.biz/
Copyright
Radian (NYSE:RDN)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Radian (NYSE:RDN)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024